Citing a weaker yen and increased auto sales in the U.S. Toyota Motor Corp. increased its quarterly profit by 94 percent to 562.2 yen, which is equivalent to $5.5 billion U.S.
Upon announcing its results for April and June the company also announced it was raising its profit forecast by an additional 8 percent for the year ending March 2014. The company has said its full-time net income could climb to a six year high of 1.48 trillion yen, which is the equivalent of $14.8 billion. The new figures surpass the previous forecast of 1.37 billion yen.
The company also raised its full year global production forecast for auto sales up to 10.2 million vehicles from its previous projection of 9.94 million vehicles which includes sales from Daihatsu Motor Co. and Hino Motors Ltd. Were Toyota to succeed in making the new goals it would become the first automaker to build over 10 million cars in a single year.
United States sales from January to July sold 1.3 million vehicles which is up 8 percent from a year ago. July sales for the Japanese auto maker increased 17 percent to 193,394 units sold, making it the fastest expansion since January. The sales figures were fueled in part by the auto giant offering competitive leases and incentives for sales of its best-selling Camry.
However, in the United States which is the Japanese auto manufacturers biggest market and accounts for nearly a quarter of its global sales, the Jan-July market shares decreased slightly to 14.3 percent.
While the company is reaping the benefits of increased sales that are occurring across the entire auto industry, the company is also getting an added benefit due to the effects of a weak yen in the global marketplace.
The company’s revenue rose 14 percent to 6.26 trillion yen while quarterly operating profit, minus the cost of goods sold and administrative expenses climbed 88 percent to 663.4 billion yen.
However, in North America Toyota’s operating profits fell 30 percent to 82.6 billion yen, down from 117.6 billion yen a year earlier.
Part of the reason for the numbers is the company is still recovering from a large amount of money lost due to a series of costly recall issues, strong yen and natural disasters such as a tsunami that devastated the country.
Analysts predict that during the next fiscal year the company will earn record profits.
“Toyota is on very solid footing now, it has more opportunities; more tailwinds than headwinds,” said Ashvin Chotai, London-based managing director of Intelligence Automotive Asia. “The yen is no longer a headache for them, and they should see a good boost in their key markets.”
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